Currency exchange between Egypt, China and UAE to start in 2024

The Central Bank of Egypt will begin activating the exchange agreement between the pound, the Chinese yuan, and the UAE dirham by early 2024, helping provide foreign exchange liquidity to Egypt.

Banking expert Mohamed Abdel-Al explained that the recent agreement between the CBE and officials of the BRICS Bank, the Chinese Central Bank, and the UAE Central Bank are an important step that came at the right time.

Abdel-Al told Al-Masry Al-Youm that the swap agreement means that Egypt will obtain a dollar as the dirham is an oil currency that is convertible to other currencies such as the dollar or euro on global stock exchanges.

He explained that exchanging LE42 billion for five billion dirhams helps Egypt provide foreign exchange liquidity and cover the existing gap in foreign exchange resources. The UAE can benefit from the LE42 billion to re-inject those amounts into the Egyptian market through purchasing assets, he added, which is considered a direct investment.